SEC. 3 (Revised 1964)-Continued

(b)-Continued

“Table IV—Married Persons Filing SEPARATE Returns-Continued
"10 PERCENT STANDARD DEDUCTION

SEC. 3 (Revised 1964)—Continued

(b)-Continued

"Table V-Married Persons Filing SEPARATE Returns

"MINIMUM STANDARD DEDUCTION

"Table V-Married Persons Filing SEPARATE Returns-Continued
"MINIMUM STANDARD DEDUCTION

SEC. 4. RULES FOR OPTIONAL TAX (68A Stat. 10):

(a).

(in part)

(c) ..

(in full)

Feb. 26, 1964, H.R. 8363, P.L. 88-272, § 301(b)(3)(A), 78 Stat. 140:
Amended Sec. 4(a) by striking out-

"table"

6

and inserting in lieu thereof

"tables".

Feb. 26, 1964, H.R. 8363, P.L. 88-272, § 301(b) (1), 78 Stat. 140:
Amended subsection (c) of section 4 to read as follows:

"(c) HUSBAND OR WIFE FILING SEPARATE RETURN.

"(1) A husband or wife may not elect to pay the optional tax imposed by section 3 if the tax of the other spouse is determined under section 1 on the basis of taxable income computed without regard to the standard deduction.

"(2) Except as otherwise provided in this subsection, in the case of a husband or wife filing a separate return the tax imposed by section 3 shall be

"(A) for taxable years beginning in 1964, the lesser of the tax shown in Table IV or Table V of section 3(a), and

"(B) for taxable years beginning after December 31, 1964, the lesser of the tax shown in Table IV or Table V of section 3(b). "(3) Neither Table V of section 3(a) nor Table V of section 3(b) shall apply in the case of a husband or wife filing a separate return if the tax of the other spouse is determined with regard to the 10percent standard deduction; except that an individual described in section 141(d) (2) may elect (under regulations prescribed by the Secretary or his delegate)

"(A) to pay the tax shown in Table V of section 3(a) in lieu of the tax shown in Table IV of section 3(a), and

"(B) to pay the tax shown in Table V of section 3(b) in lieu of the tax shown in Table IV of section 3(b).

• Section 4 originally read as follows:

"SEC. 4. RULES FOR OPTIONAL TAX.

"(a) NUMBER OF EXEMPTIONS.-For purposes of the table in section 3, the term 'number of exemptions' means the number of the exemptions allowed under section 151 as deductions in computing taxable income.

"(b) MANNER OF ELECTION.-The election referred to in section 3 shall be made in the manner provided in regulations prescribed by the Secretary or his delegate.

"(c) HUSBAND OR WIFE FILING SEPARATE RETURN.-A husband or wife may not elect to pay the optional tax imposed by section 3 if the tax of the other spouse is determined under section 1 on the basis of taxable income computed without regard to the standard deduction. For purposes

of the preceding sentence, determination of marital status shall be made under section 143.
"(d) CERTAIN OTHER TAXPAYERS INELIGIBLE.-Section 3 shall not apply to—
"(1) a nonresident alien individual;

"(2) a citizen of the United States entitled to the benefits of section 931 (relating to income from sources within possessions of the United States);

“(3) an individual making a return under section 443(a)(1) for a period of less than 12 months on account of a change in his accounting period; or

"(4) an estate or trust.

(e) TAXABLE INCOME COMPUTED WITH STANDARD DEDUCTION.-Whenever it is necessary to determine the taxable income of a taxpayer who made the election referred to in section 3, the taxable income shall be determined under section 63(b) (relating to definition of taxable income for individuals electing standard deduction).

"(f) CROSS REFERENCES.—

"(1) For other applicable rules (including rules as to the change of an election under section 3), see section 144.

"(2) For disallowance of certain credits against tax, see section 36."

SEC. 4-Continued

(c)—Continued

(f) (3) __ (added)

(f) (4). (added)

For purposes of this title, an election under the preceding sentence shall be treated as an election made under section 141 (d)(2).

"(4) For purposes of this subsection, determination of marital status shall be made under section 143."

Feb. 26, 1964, H.R. 8363, P.L. 88-272, § 232(f) (1), 78 Stat. 111: Amended Sec. 4(f) by adding at the end thereof, after paragraph (2), the following new paragraph (3):

"(3) For rule that optional tax is not to apply if individual chooses the benefits of income averaging, see section 1304(b).”

Applicability:

Taxable years beginning after December 31, 1963.

(Id., § 232(g)(1), 78 Stat. 112.) See "Applicability" with respect to amendment of Part I of Subchapter Q of Chapter 1, p. 486 below.)

Feb. 26, 1964, H.R. 8363, P.L. 88-272, § 301 (b) (3) (B), 78 Stat. 140: Amended Sec. 4(f) by adding at the end thereof, after paragraph (3) (as added by P.L. 88-272, § 232(f)(1)), the following new paragraph (4):

"(4) For nonapplicability of Table V in section 3(a) and Table V in section 3(b) in case where tax is not computed by taxpayer, see section 6014 (a).” Applicability:

Taxable years beginning after December 31, 1963.

(Id., § 301(c), 78 Stat. 140.)

SEC. 5. CROSS REFERENCES RELATING TO TAX ON INDIVIDUALS (68A Stat. 10):

(b)__
(in full)

Feb. 26, 1964, H.R. 8363, P.L. 88-272, § 232(f) (2), 78 Stat. 111-112:
Amended subsection (b) of Sec. 57 to read as follows:

"(b) SPECIAL LIMITATIONS ON TAX.

"(1) For limitation on surtax attributable to sales of oil or gas properties, see section 632.

(2) For limitation on tax in case of income of members of Armed Forces on death, see section 692.

"(3) For limitation on tax where an individual chooses the benefits of income averaging, see section 1301.

"(4) For computation of tax where taxpayer restores substantial amount held under claim of right, see section 1341.

"(5) For limitation on surtax attributable to claims against the United States involving acquisitions of property, see section 1347."

'Section 5 originally read as follows (68A Stat. 10-11):

"SE C. 5. CROSS REFERENCES RELATING TO TAX ON INDIVIDUALS.

"(a) OTHER RATES OF TAX ON INDIVIDUALS, ETC.

"(1) For rates of tax on nonresident aliens, see section 871.

"(2) For doubling of tax on citizens of certain foreign countries, see section 891.

"(3) For alternative tax in case of capital gain, see section 1201 (b).

"(4) For rate of withholding in the case of nonresident aliens, see section 1441.

'b) SPECIAL LIMITATIONS ON TAX.

"(1) For limitation on tax attributable to receipt of lump sum under annuity, endowment, or life insurance contract, see section 72(e) (3).

'(2) For limitation on surtax attributable to sales of oil or gas properties, see section 632.

(3) For limitation on tax in case of income of members of Armed Forces on death, see section 692.
"(4) For limitation on tax with respect to compensation for long-term services, see section 1301.
"(5) For limitation on tax with respect to income from artistic work or inventions, see section 1302.
"(6) For limitation on tax in case of back pay, see section 1303.

"(7) For computation of tax where taxpayer restores substantial amount held under claim of right, see section 1341.

(8) For limitation on surtax attributable to claims against the United States involving acquisitions of property, see section 1347."